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Here's Why You Should Invest in ARC Document (ARC) Stock Now

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ARC Document Solutions, Inc. (ARC - Free Report) has impressed investors with its recent earnings results, wherein both the top line and bottom line surpassed the Zacks Consensus Estimate. We believe that strong traction across the company’s business lines and solid portfolio of new products might continue to be growth drivers.

The stock has had an impressive run on the bourse in the past three months. Shares of ARC Document have gained 47.9%, significantly outperforming the industry’s growth of 4.9%. We expect that the company’s impressive traction across markets to continue in the quarters ahead.

Given this backdrop, let’s delve deeper to find out the key factors that make this Zacks Rank #1 (Strong Buy) company an attractive proposition for investors right now.

Factors to Consider

ARC Document’s focus on launching new products and solutions enables it to gain a competitive advantage over its peers. Its array of technology and document solutions allow it to be flexible and customer-driven, creating competitive advantages for its customers. For instance, recently the company added a key product to its line of mobile facilities dashboards — ARC Emergency. Also, it rolled out an interactive, online value calculator for the facilities, engineering and maintenance management teams. Going forward, we believe that the company’s continuous focus on building strong portfolio of products and solutions are likely to remain key growth drivers.

Moreover, the company has been witnessing solid activity on the earnings estimate revision front, reflecting bullish sentiments. In the past couple of months, the Zacks Consensus Estimate for 2018 earnings has trended up from 12 cents to 14 cents, on the back of one upward estimate revision versus none downward.

Further, the consistent execution of the company’s strategic objectives has enabled it to deliver sales improvement over the past few quarters. Also, on a P/E (TTM basis), the stock looks undervalued compared with the industry, based on respective tallies of 24.2x and 30.1x in the past three months. This apart, the company’s cost management activities are allowing it to improve its consolidated gross margin.

Other Key Picks

Some other top-ranked stocks in the same space are Altra Industrial Motion Corp. , Barnes Group, Inc. (B - Free Report) and Pentair plc (PNR - Free Report) . While Altra Industrial Motion sports a Zacks Rank #1, Barnes Group and Pentair carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Altra Industrial Motion surpassed estimates thrice in the trailing four quarters with an average positive earnings surprise of 4.01%.

Barnes Group outpaced estimates thrice in the preceding four quarters with an average earnings surprise of 6.88%.

Pentair exceeded estimates thrice in the preceding four quarters with an average earnings surprise of 2.50%.

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